Banks to start loans recovery from Kingfisher

Troubled air carrier Kingfisher Airlines is at moribund point as its key lenders have decided to recall the loans given to the company. The consortium of 17 banks led by State Bank of India (SBI) has an exposure of Rs. 7,000 crore to the Kingfisher.

Banks had to consider this extreme measure as the airline’s management could not devise with any reliable revival plan. Its flying licence has been cancelled since January 1, 2013. It stopped flying since October 1, 2012, following a strike.